Landlord Tax Calculator
Enter your rental income, expenses, mortgage interest and other taxable income, and this calculator estimates the tax due on your rental profit — including the 20% mortgage interest tax credit most landlords now rely on instead of a direct deduction.
It's built for a quick, ballpark answer while you're budgeting for a tax bill or comparing properties, not a substitute for an actual Self Assessment return. The gap between your taxable rental profit and your actual cash profit is one of the most common landlord surprises, since mortgage interest reduces your bank balance but no longer reduces the profit you're taxed on directly — this calculator is built to make that gap visible rather than hide it.
These figures are unofficial, indicative estimates only — not a tax return, an HMRC calculation, or financial, tax or legal advice. Always confirm your position with a qualified accountant or tax adviser before acting on it.
Total rent received for the year, before any deductions.
Letting agent fees, insurance, repairs, ground rent and similar running costs.
No longer deducted as an expense — instead it earns a 20% tax credit against your bill.
Salary, self-employment profit or other income, used to work out which tax band your rental profit falls into.
Estimated tax on your rental profit
£1,680
Rates & assumptions used
- Personal Allowance: £12,570, tapered above £100,000 total income
- Basic rate: 20% up to £50,270 total income
- Higher rate: 40% up to £125,140 total income
- Additional rate: 45% above £125,140 total income
- Mortgage interest and other finance costs aren’t deducted as an expense — instead you get a 20% tax credit, capped here at your rental profit
- Your rental profit is treated as sitting on top of your other income for band purposes
- Assumes England, Wales or Northern Ireland rates, and doesn’t account for jointly owned property or furnished holiday let rules
Where your rental income goes
- Rental income
- £14,400
- Allowable expenses
- − £2,000
- Taxable rental profit
- £12,400
- Tax before mortgage interest credit
- £2,480
- Mortgage interest tax credit
- − £800
- Estimated tax on rental profit
- £1,680
- Cash left after mortgage interest & tax
- £6,720
This is an estimate for planning purposes only, not a tax return or financial advice. Your taxable rental profit is higher than your actual cash profit, because mortgage interest reduces your bank balance but isn’t deducted before working out the tax — that gap is exactly what the mortgage interest tax credit is meant to soften, not fully replace.
For the full picture, see our complete landlord tax guide, or head straight to Landlord Accounting support.
How this works
- 1Enter your annual rental income and allowable running expenses, not including mortgage interest.
- 2Enter your mortgage interest paid for the year separately — it's no longer deducted as an expense.
- 3Enter your other taxable income, so the calculator can work out which tax band your rental profit falls into.
- 4The calculator works out your taxable rental profit, the tax due on it at your marginal rate, then applies a 20% tax credit for your mortgage interest.
- 5Everything updates instantly as you type — there's nothing to submit and nothing is saved or sent anywhere.
FAQs
Landlord Tax Calculator questions
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